HSS Hire to strengthen balance sheet with £13m share sale
Tool supplier HSS Hire is to raise £13 million through a share sale in order to strengthen its balance sheet and fund investment.
The firm, which was forced to issue a profit warning last month, is in the middle of a transformation programme which will see the integration of a new national distribution and engineering centre.
HSS said on Thursday: "The scale and complexity of the programme (including £12.5 million of previously announced one-off costs for the nine-month period ended 1 October 2016), together with the ongoing investment to support revenue growth, has led the board to conclude that an equity injection would strengthen the balance sheet of the group and provide additional flexibility to fund fleet investment as it completes the change programme in early 2017."
The group said in November that it expects to have fully integrated the centre within the first quarter of 2017, but warned that the extended timeline will affect core rental and revenue growth and slow its efficiency drive.
HSS closed 18 under-performing branches in October and has shuttered four distribution centres since mid-year as part of wide cost-cutting plans.
HSS, which has more than 300 branches across the UK employing more than 3,200 people, floated on the London Stock Exchange in February last year.